Is an increase in the monthly installment for a customer who is late in making payments, which follows a rescheduling based on a new price, considered usury (riba)?
It is permissible to sell a commodity by installments at a higher price than its cash price, but it is not permissible to increase the price for the indebted buyer if he delays in paying the installments beyond the due date, because that is usury (riba), which is forbidden. Therefore, it is not permissible to reschedule the debt by increasing the installment amount due to the delay, even if the buyer agrees to it. Rather, he must be granted a respite until a time of ease, as Allah Almighty says: (And if there is one in [financial] difficulty, then [give him] time until a time of ease). However, if the buyer procrastinates in payment while he is able to do so, his action is unlawful.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Original fatwa ID
- 18757
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- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy